CP earnings up for second quarter and first half

Written by
Luther S. Miller, Senior Consulting Editor

Canadian Pacific Railway announced Wednesday that it earned net income of C$103 million (roughly US$101 million) and diluted earnings per share of 60 Canadian cents, "inclusive of the negative impact of approximately [C]$0.30 from significant items including management transition and advisory costs." In addition, a nine-day strike following the railroad's takeover in a proxy fight is estimated to have reduced EPS by 25 to 30 Canadian cents.

Total second-quarter revenue was C$1.4 billion, an increase of C$93 million. Operating income was C$239 million, an increase of C$8 million. Operating ratio was 82.5%, an increase of 80 basis points. Net income was $103 million, a decrease of $25 million.

For the first half of 2012, net income was C$245 million, an increase of 51%, and diluted earnings per share came to C$1.42, an increase of 49%. CP said these increases were "primarily due to increased volumes and improved operating performance."

CP President and CEO E. Hunter Harrison said: "I look forward to working with a solid team of dedicated railroaders to improve CP's service offering and drive long-term shareholder value. Canadian Pacific is a strong franchise with positive market opportunities."